India is rapidly advancing towards becoming a global economic leader, with projections indicating it will secure the position of the world's third-largest economy by 2028. This optimistic outlook was reiterated by Shaktikanta Das, former Governor of the Reserve Bank of India and currently Principal Secretary-2 to Prime Minister Narendra Modi, during an address at the Gokhale Institute of Politics and Economics on October 11, 2025.
Economic Growth and Future Projections
Das emphasized that India's remarkable growth is underpinned by a combination of structural reforms, fiscal discipline, and robust macroeconomic fundamentals. The country recorded a solid 7.8% GDP growth in the first quarter of FY26 (April-June 2025), positioning it as the fastest-growing major economy globally. By 2028, India is expected to contribute approximately 20% to global economic growth, aligning with its "Viksit Bharat" (Developed India) vision for 2047.
The growth trajectory is fueled by strong performance across various sectors. Manufacturing has seen a significant boost from initiatives like Atmanirbhar Bharat and the Production-Linked Incentive (PLI) scheme, particularly in technology and renewable energy. The services sector continues to be a major driver, employing nearly one-third of the Indian workforce and contributing substantially to exports.
Trade and International Relations
In the realm of international trade, Indian and European Union officials expressed optimism about finalizing a trade deal this year, following the 14th round of negotiations in Brussels. India is actively engaged in reshaping its trade engagements, focusing on securing fair and balanced agreements. The nation has already signed 14 free trade agreements (FTAs) and six preferential trade agreements (PTAs), with ongoing negotiations with countries like the US and the EU.
Technological Advancement and Innovation
India is witnessing a significant shift in its innovation strategy, moving towards an AI-driven, homegrown, and collaborative model. This trend was a key topic at the Confederation of Indian Industry's (CII) flagship India Innovation Summit ā CII Innoverge 2025, held in Bengaluru. Industry and government leaders highlighted the importance of collaboration and increased R&D investment to become a product-first nation, scaling AI-driven solutions across various systems. Swedish telecommunication company Ericsson also showcased its 5G and AI-powered innovations at the India Mobile Congress (IMC) 2025, reaffirming its commitment to India's digital transformation.
Banking Sector Update
On a more operational note, the State Bank of India (SBI) conducted scheduled maintenance on its digital banking services, including UPI, IMPS, YONO, Internet Banking, NEFT, and RTGS, during the early hours of October 11, 2025. These services were temporarily unavailable between 1:10 AM and 2:10 AM IST. Customers were advised to utilize ATM services and UPI Lite for essential transactions during this one-hour window.